SEPTA riders — and businesses that rely on them — recently celebrated Gov. Shapiro’s decision to redirect some state highway funds to address the transit agency’s budget shortfall. While this move provides a temporary financial lifeline, it only secures SEPTA’s operations through the end of spring. Beyond that, the state legislature must develop a long-term solution to avoid devastating cuts to a network that supports 32 percent of Pennsylvania’s population and 42 percent of its economic activity.

To boost ridership and fare revenue as SEPTA recovers from the impacts of Covid, Philadelphia’s leaders should prioritize supporting the agency’s operational health by encouraging the development of more housing near its high-quality transit infrastructure. This could bolster ridership on two of the most vulnerable regional rail routes — Chestnut Hill East and West lines, which connect the Chestnut Hill and Germantown neighborhoods to Center City — simply by increasing population density to match other parts of the city with similar levels of transit service.

According to SEPTA’s data, the Chestnut Hill East and West lines rank at the bottom half of regional rail routes for riders per mile and near the bottom for total ridership. In recent years, they have been excluded from so-called “doomsday” maps outlining what service would be maintained following possible budget cuts — leading local riders understandably worried about the fate of this service.

Population density in the census tracts surrounding the Chestnut Hill lines is just 7,800 people per square mile, significantly lower than the 10,600 people per square mile near other regional rail stations in Philadelphia. It also falls short of the 10,000 people per square mile researchers recommend to sustain adequate ridership for frequent rail transit.

If new residents along the Chestnut Hill lines were as likely to use the train as current residents, increasing population density in these areas to 10,600 people per square mile could boost both ridership and financial cost recovery by roughly 35 percent. This is, of course, just a modest and demonstrative example along just two lines: More aggressive and more widespread land use liberalization across the whole system could grow ridership and financial performance in proportion to the boldness of the reform.

How should Philadelphia’s leaders achieve this goal? While the specifics are best left to local leaders and experts, proven strategies from other communities can serve as valuable models. One effective approach is enabling more “missing middle” housing — housing types such as duplexes, townhomes, and small apartment buildings that provide medium densities often absent in new construction. Encouraging this type of development near transit allows communities to grow organically while maintaining familiarity.

Over time, this approach can meaningfully expand housing supply. In Palisades Park, New Jersey, this strategy led to the construction of significantly more housing compared to neighboring communities, helping keep housing costs in check even as prices rose elsewhere.

Another effective strategy is transit-oriented development, which focuses on encouraging larger projects — apartment complexes, offices buildings, or mixed-use developments — near transit stations to maximize transit accessibility for residents and businesses. This has been implemented successfully in Arlington, Virginia, leading to a population growth of more than 60,000 people over 50 years — while significantly reducing traffic levels.

Station area zoning overlays can also ease land use regulations near transit stops for costly requirements like off street parking minimums, which can average $29,000 per space in a parking garage. Washington, D.C., has successfully implemented zoning overlays to lower parking requirements near Metrorail stations and some high-traffic bus stops.

By focusing on strategies that support SEPTA’s long-term health, Philadelphia’s leaders can strengthen the foundation of their transit system while improving access to opportunities and essential services — without straining other infrastructure or adding to traffic congestion. This would benefit the city, while also signaling to Pennsylvania state leaders that its largest city is committed to implementing meaningful reforms within its control to support SEPTA’s long-term fiscal health.

Andrew Justus is a housing policy analyst, who works on urban issues including housing, transportation, and infrastructure within the social policy team. Previously, he was an associate attorney at Sullivan & Barros, LLP where he worked on zoning and land use approvals for residential developments in Washington, D.C. Before moving to D.C., Andrew worked at the Detroit Land Bank Authority on mitigating public nuisances in residential areas as part of the agency’s legal team.

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